The Steelers and T.J. Watt have agreed to a contract extension that will give him the highest average annual value for a non-quarterback in NFL history.
The extension adds three years, $123 million deal, an average of $41 million per season (AAV), to his existing contract, which had one year remaining. The AAV of Watt's extension is 14.4% of the Steelers' salary cap, which is nearly 1% less than his previous contract extension from 2021.
The extension also comes with $108 million in guaranteed money at signing.
In total, Watt will be paid $144.05 million over the next four seasons, an average of $36 million per season, and keeps him a Steeler through the 2028 season. With Watt turning 31 during the upcoming season, this is a more team-friendly deal than the last extension.
NFL teams don't look at contracts the way fans do. Fans hear dollar figures and "record-breaking" and make their judgements off of that. What teams do is look at how the contract is allocated against the entire salary cap. This record extension of $41 million per season takes up less of the pie than the last contract did. Taking the $36 million per season over the next four years into account, it's an even smaller amount allocated to Watt.
This is possible because the NFL's salary cap has exponentially grown over the past few years. The league has never been more healthy, and the salary cap is surging beyond expectations because of it. Thus, more and more players are getting record deals that were quarterback money several seasons ago.
The contract breakdown is not common knowledge just yet, but it's a good bet this extension could alleviate more cap space on top of the $25 million of room, according to Spotrac. Currently, Watt carries a $30.45 million cap hit for the upcoming season.
All in all, and more important, the two sides hammered this deal out in time to avoid a potential holdout or hold-in at training camp, which opens next week in Latrobe, Pa. Now, the last bit of potential drama for training camp has been put to bed.
And, it's worth emphasizing that Watt and the Steelers were always going to get this done. Unlike the situation with George Pickens, Omar Khan was committed to keeping Watt in a Steelers uniform for his entire career. Watt will be 34 years old by the time this extension expires, so it's a good bet this contract has satisfied that desire.
Watt had 11.5 sacks last season, the lowest in a season in which he's played at least 11 games since he was a rookie in 2017. However, he's still arguably the best run-defending edge rusher in the game. He still creates big plays in big moments. And, since contracts are often negotiated based on previous accomplishments, it's worth noting that Watt was the 2021 Defensive Player of the Year and no player has more sacks, quarterback hits, tackles for loss or forced fumbles since Watt came into the league.
Watt is the best pass rusher in franchise history. This contract got done, and done before training camp, to keep him a Steeler for life.
THE ASYLUM
Watt, Steelers reach record deal
The Steelers and T.J. Watt have agreed to a contract extension that will give him the highest average annual value for a non-quarterback in NFL history.
The extension adds three years, $123 million deal, an average of $41 million per season (AAV), to his existing contract, which had one year remaining. The AAV of Watt's extension is 14.4% of the Steelers' salary cap, which is nearly 1% less than his previous contract extension from 2021.
The extension also comes with $108 million in guaranteed money at signing.
In total, Watt will be paid $144.05 million over the next four seasons, an average of $36 million per season, and keeps him a Steeler through the 2028 season. With Watt turning 31 during the upcoming season, this is a more team-friendly deal than the last extension.
NFL teams don't look at contracts the way fans do. Fans hear dollar figures and "record-breaking" and make their judgements off of that. What teams do is look at how the contract is allocated against the entire salary cap. This record extension of $41 million per season takes up less of the pie than the last contract did. Taking the $36 million per season over the next four years into account, it's an even smaller amount allocated to Watt.
This is possible because the NFL's salary cap has exponentially grown over the past few years. The league has never been more healthy, and the salary cap is surging beyond expectations because of it. Thus, more and more players are getting record deals that were quarterback money several seasons ago.
The contract breakdown is not common knowledge just yet, but it's a good bet this extension could alleviate more cap space on top of the $25 million of room, according to Spotrac. Currently, Watt carries a $30.45 million cap hit for the upcoming season.
All in all, and more important, the two sides hammered this deal out in time to avoid a potential holdout or hold-in at training camp, which opens next week in Latrobe, Pa. Now, the last bit of potential drama for training camp has been put to bed.
And, it's worth emphasizing that Watt and the Steelers were always going to get this done. Unlike the situation with George Pickens, Omar Khan was committed to keeping Watt in a Steelers uniform for his entire career. Watt will be 34 years old by the time this extension expires, so it's a good bet this contract has satisfied that desire.
Watt had 11.5 sacks last season, the lowest in a season in which he's played at least 11 games since he was a rookie in 2017. However, he's still arguably the best run-defending edge rusher in the game. He still creates big plays in big moments. And, since contracts are often negotiated based on previous accomplishments, it's worth noting that Watt was the 2021 Defensive Player of the Year and no player has more sacks, quarterback hits, tackles for loss or forced fumbles since Watt came into the league.
Watt is the best pass rusher in franchise history. This contract got done, and done before training camp, to keep him a Steeler for life.
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